The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1887-08-03
STANFORD AGAIN
o.luctantly Answering the
commissions Quest onS
oOscgRNING THE C. Prs DEBT.
man Pattison Objects to Any
Chamber Proceedings
other Notes.
stanford on the stand.


-, of Senator Stanford was re-
Su-, ad before the Pacific Railway In
ITO Commission to-day. He
. ,' that the Central Pacific
n-nonv in receiving financial aid
EoL n, he government, occupied the
lLoH of an independ Mt contracting
pO9,..I0o and was not acting as agent IN a
P sL1t;, capacity, as he (Stanfordl
n !NufaC.ad the Commissioners believed
i inl1. the remarks made by them. He
IULn n list of the resources OF the Cen
gaTe I'D Western Pacific Com
LLa1 with the exception of those
paniiIYl contributed by promoters
O VI fbo enterprise up to December 3lst,
% y6eo nv The resources. Stanford stated,
Io oOorntad to SAG, O62 900, and OF this
sn iOunt only Sal, 485 900 was realized
rom the first mortgage bonds and gov
lament bonds. The cost OF building
fba o road to Ogden was S57 1855, goo or
az GO0 per mile. Witness said En-
F ,;nSsT Jndeh estimated that the road
Gould rnUId cost 500 900 per mile, and other
engineers thought 1t
COULD MI DE- DSAEA
FIR less tnan 500 900 mile. He thought
M hoard of engineers would put a
lover estimate on the cost of
.bo road. s556OO per mile was
,,nToasonable. stanton argued that
e government aid and the product
Of the first mortgage bonds had alone
Sssn sufficient to build the road, 1t
TonId have co t about Si8, $50 per mile,
and that even if the Central Pacific
Company was compelled to account ior
its expenditures to government, thls
yould show that the aid granted was
insufficient to bald the road, upon that
basis. government should make good
the deficiency. He stated that the aid
received from the counties OF Yolo,
Yuba. Solano, San Msteo, Los Angeles,
San JOAQUIN, and others, amounting to
So 5000. did not concern the
Central Pacific. In some cases the
money authorized under the acts
of the Legislature by the counties
referred TO vas never raised, and where
il was il went to roads other than the
Central Perhaps some of the roads so
built we're now leased by the Central
Pacific, however.
Commissioner Anderson said to wit
ness: Senator, the belief is prevalent,
whether Just or not is immaterial, that
the inability of the Central Pacific to
pay
ITS INDEBTEDNESS TO GOVERNMENT
arises from the fact that its resources
have been expended through contracts
Leland work done by contract with the
Western Development and Pacific I'm
prOyement Company"
To this Stanford replied that no
money belonging to the Central Pacific
had been diverted to any other corpo-
ration.
Anderson asked if the books of corpora
hons which had dealings with the Cen
tral Pacific were open for inspection.
Stanford replied: 81 am ready to use
my influence to have the commission
examine any books we have as to the
Central Pacific Railroad, but we have
very active rivals and competitors, and
all have relations with many indiyid-
Uals, These accounts we do not wish
10 be laid before the public"
AhderSon-"D Do l understand that
ms offer includes the inspection of the
BOOKS OF the Western Development and
racine Improvement and other com
panleS which have had dealings with
the Central PaCihc2"
otaniOrd-"SO far as those books re-
-ate TO the affairs of the Central Pacific,
We nave no objection to their being
opened to your inspection"
CHAIRMAN PATTIsoN
remarked that If private inquiry at the
Office OF the railroad company was con-
templated, he should put in an obiec-
uon at once. He would not consent as
an officer Of the government. to any
sIaT'Ghamber proceedings. If the hooks
could not be publicly inspected ne wonId
NOT inspect them at all,
senator Stanford said the comnaDv
ud not ask for any star-chamher in
Jury II merely desired that such mat
;sLs sS were not pertinent to the oh
!sCS OIL the committee be not given TO
'ue puonc nor made point of record.
q. auuerson asked that the proposition
VI VI me Central Pacific lawyers in regard
: l4e inspection of the books be put in
lung and this was afterwards done.
,- Duilng The progress of the foregoing
ss,oSesulngS, a petition had been pre-
cugeu 10 the United States Circuitcourt
ne rue commission asking that f. S.
S. ~ Y, Secretary and Treasurer of
sir 1 western Development and other
r ,.ottaf corporations, be compelled TO
iE o the books of those companies
VI s9e Inspection of the commission.
mo Iose sawyer set the matter for hear
omorrow morning.
a. !. me afternoons session, the fol-
,5ng proposition was presented nv
viii I'll counsel s9lse OF the Central Pacific: We
nj ~ .S submit to the committee the books
a, -s,, companies asked for from Doutv
~, neu as any other evidence at our
sssa-. ana' reServing the right to
6 Ma our legal rights to with
NJ ~ tne same or portion
mant same whenever, in our iudg-
inIa MI, Ae commission seek to examine
perpin Lnaters appearing therein not
Mat e cut 10 a proper or full and COM
Of on examination by the Commission
Wb; al matters with the inyestigatIon of
the AZ, ' ~ "a are properly charged under
TS aet OF Congress-"
ton n,S commission took tie PROPOSE
Tb o"uei advisement.
the nv commission decides to accent
tia. ,IpOsiIlon win the UNDERSTANDING
papers entered in the United